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Nestle’s 2020 earnings were not so sweetINTL

Nestle’s 2020 earnings were not so sweet

Nestle’s sales fell by 8.9% year on year to CHF 84.3b in 2020. Whilst sales improved in every region, growth only really occurred in the Americas in relation to Purina PetCare and Nestle Health Services.

Apparently confectionary hasn’t been high on the agenda (as much as we’d like to state the case that in a global pandemic, chocolate is a necessity). And as a result, the global shift in healthier lifestyles, and taking care of our wellbeing has meant the demand for Nestle’s confectionery products has plummeted. 

Whilst Nestle’s 2020 earnings left a bitter taste in the mouth, it’s safe to say the pandemic has helped increase our care for our bodies and pets, as indicated by our consumer behavior over the last 12 months.

why it matters
It’s likely these changing consumer attitudes will feed into Nestle’s wider strategy and product diversification, but as a large staple output and as the end of the pandemic is on the horizon thanks to the vaccine, Nestle’s confectionary is here to stay.